Luka Modric is set to reject Inter Milan and sign a new deal with Real Madrid.

Marca says Modric's future with Real has been cleared up with the midfielder staying after being given a pay increase as reward for his performances for the club.

His salary will now be on a par with captain Sergio Ramos and only behind Gareth Bale.

The increase is an indication of how important he is to the team and how much he is valued. The Real hierarchy was anxious to get an agreement.